Today in the stock market, State Bank of India (SBI) faced a significant decline in its shares following a decision by the Supreme Court. The court’s constitution bench rejected SBI’s request to extend the deadline for revealing details about electoral bonds. The court also instructed the largest commercial bank in India to share these details by the end of business hours on Tuesday, March 12, 2024.
The Chief Justice of India DY Chandrachud, leading the five-judge constitution bench, stated that SBI’s plea for more time is unnecessary, as the electoral bonds scheme mandates the disclosure of details when requested by the court. SBI has been directed to comply with this order by the specified deadline.
Saurabh Jain, Vice President of Research at SMC Global Securities, explained that the decline in SBI share price is due to negative sentiments surrounding the banking stock. The rejection of SBI’s plea by the Supreme Court and overall weak sentiments in the Indian stock market are the primary reasons for the dip in SBI shares.
Regarding the impact of the Supreme Court’s decision on electoral bonds, Jain stated that it won’t significantly affect the fundamentals of the PSU bank. He suggested that the drop in SBI share price could be viewed as an opportunity by medium to long-term investors.
In the previous month, the Supreme Court deemed the electoral bonds scheme illegal, as it allowed individuals and companies to anonymously purchase these bonds, infringing upon the voters’ right to information. Electoral bonds have been a significant method of political funding, enabling donors to contribute anonymously through certificates bought from the State Bank of India (SBI).”
